Wednesday October 26 Ag News

North African Buying Team Visits Nebraska to See Corn Industry Firsthand

The U.S. Grains Council’s Export Exchange conference just wrapped up in Detroit, Michigan, and overseas grain buyers from the North African countries of Morocco and Tunisia have now seen corn harvest and ethanol production for themselves after making a pre-conference stop in Nebraska.

International trade plays a key role in the success of our industry. With a record corn harvest expected for 2016, it is critically important that there are markets for our corn and value-added corn products. U.S. Grains Council’s (USGC) Export Exchange conference offers the perfect opportunity to bring international trade teams to Nebraska, and across the U.S., so they can see our corn supply and quality for themselves.

The team, consisting of representatives from major North African corn importers and feed companies, had the opportunity to visit Central Plains Milling in Howells to learn about the U.S. feed industry, before heading to Green Plains trading floor in Omaha. They also had the opportunity to tour the Green Plains production plant in Shenandoah, Iowa to see ethanol and distillers grain production. The team capped their Nebraska visit by experiencing corn harvest firsthand at Alan Tiemann’s farm by Seward.

Tiemann, at-large director on the Nebraska Corn Board and past-chair of the USGC said, “The grain buyers from North Africa were extremely impressed with the quality of our corn and corn products and were appreciative of their time in Nebraska.”

“The fact is, every farmer and rancher in Nebraska benefits from exports, even if they don’t personally export anything. Inviting grain buyers from Morocco, Tunisia and other places around the world to Nebraska is a vital step in establishing relationships and building new export markets with international trade partners,” added Tiemann

Held every other year by the USGC and the Renewable Fuels Association (RFA), Export Exchange brings together international buyers with U.S. sellers of corn, sorghum, barley, distiller’s dried grains with solubles (DDGS), corn gluten meal and corn gluten feed. The conference highlights the importance of strong trade policy and market development to U.S. agriculture. The USGC in partnership with Nebraska Corn Board works in more than 50 countries and the European Union to market U.S. grains and their related products and build long-term demand from loyal customers.

Boone McAfee, Nebraska Corn Board’s director of research and coordinator for this team, noted, “Strengthening the bonds between Nebraska suppliers and our international trade partners is essential. The connections made during their visit to Nebraska, in addition to their time at US Grains Council’s Export Exchange Conference, will help propel a positive trade partnership for current and future trade opportunities.”



ADAPTIVE GRAZING, SOIL HEALTH, COVER CROPS
Paul Hay, NE Extension Educator, Gage County

                The Nebraska Grazing Lands Coalition and University of Nebraska Extension Present: Dirt Rich or Dirt Poor: Principles of Soil Health, Adaptive Grazing and Cover Crop Integration.  Educational program is set for Tuesday, November 15 from 5:00 pm till 9:00 pm at the Extension Office Meeting Room on the Fairgrounds in Beatrice.  Registration is $15 including meal and materials.  Pre-register by calling the Extension office at 402-223-1384.

                Allen Williams is a nationally recognized expert in Grazing Management, Grass Fed Beef, Beef Production Profitability, and Integration of Cover Crops into Beef Production.  Allen is a sixth generation family farmer and holds BS, MS degrees in Animal Science from Clemson University and a Ph.D. from Louisiana State University.

                Allen spent 15 years in Land Grant University research, teaching, and extension.   He has worked with more than 4,000 farmers and ranchers in the US, Canada, Mexico, and South America.  Allen consults with branded food programs, farmers, processors, distributors, retailers, and food service.

                Allen has been an invited speaker at over 400 regional, national, and international conferences and symposia.

                For more information e-mail Paul C Hay at phay1@unl.edu, call 402-223-1384, or visit the News Column University of Nebraska Extension local Website: gage.unl.edu, Twitter:@Cloverhay



JUST THE FACTS-EXPERT TO SPEAK ABOUT WIND TURBINE NOISE

Recently, concerns about the noise from wind turbines has become a topic of discussion as local officials consider appropriate sound levels for planning and zoning.  Ryan Callahan, an acoustic engineer with Tech Environmental will make a keynote presentation ‘Wind Turbine Noise-Just the Facts.’  His presentation will be Tuesday, November 8 at 11:30 a.m. during the 9th Annual Nebraska Wind and Solar conference at the Cornhusker Marriott in Lincoln, NE.

Callahan has eleven years of experience as a noise consultant in acoustic modeling and sound level monitoring, and received his bachelor of science in civil engineering from Northeastern University. An expert in applications of acoustic models to wind farms, power plants and other construction related projects, Callahan designs and implements field monitoring programs for permitting purposes. These field monitoring programs can also be used for demonstrating compliance with local and state noise regulations.

“County administrators are oftentimes between a rock and a hard place when it comes to wind turbine noise,” said John Hansen, conference co-chairman. “They need to balance the concerns of county residents with the sound facts from research and from scientific modeling. When determining appropriate set back requirements, administrators cannot rely on rumors and feelings.  They need the best scientific and sound level monitoring information available that has been proven to be reliable.”

During his time at Tech Environmental, Callahan has successfully completed sound monitoring and modeling for more than 200 projects including a 420-megawatt wind farm.

This year’s conference will kick off with a site tour of Lincoln Electric System’s SunShares Community Solar Project, Sunday, November 6 from 2:00 p.m. to 5:00 p.m. The tour will leave from the Cornhusker Marriott Hotel.  The tour fee is just $10 and open to the public. Registration for the conference is $150, and $175 for walk-in registrations the day of the conference. Student registration is only $65. Visit our website at www.nebraskawindandsolarconference.com to register for the conference and solar project tour and to make your hotel reservations. Also check out this year’s conference schedule.



EPA Region 7 Awards Environmental Education Grants Focusing on Wetlands and Sustainable Food Production

EPA Region 7 awarded three Environmental Education grants recently totaling more than $370,000, in conjunction with EPA’s Office of External Affairs and Environmental Education in Washington, D.C.

The grants were awarded to the Board of Regents, University of Nebraska, Lincoln, Neb.; National Audubon Society d/b/a Rowe Sanctuary, Gibbon, Neb.; and Eastern Iowa Community College District, Davenport, Iowa.

The Board of Regents, University of Nebraska - A total of $122,148 will fund its project, "Introducing Environmental Sustainability Principles for Food Production into High School Science." It will focus on creating a curriculum that will provide a framework for students to understand the complex, adaptive systems involved in the food system, and prepare students to make future personal decisions related to environmental sustainability. The work will include implementing, pilot testing, evaluating, and disseminating a curriculum that empowers high school students to assess the sustainability of local farms using the Field to Market Fieldprint® Calculator, which is a tool used to measure several characteristics of a field, including land use efficiency, greenhouse gas contribution, and water quality impact.

The Rowe Sanctuary‘s Iain Nicolson Audubon Center - A total of $134,290 will fund its project, "Wetlands for Schools and Communities," a partnership with Kearney Public Schools. The project is two-fold: 1) Partners will create an outdoor wetland at the newly-built high school. This wetland and adjacent grasslands will include habitat for waterfowl, shorebirds, and grassland birds that migrate through and nest in central Nebraska each year, including several species of special concern. The wetland will also filter runoff water to improve water quality and increase groundwater recharge in an over-appropriated river basin. 2) The EPA grant will create an outdoor classroom and curriculum for students, parents, and the entire community, who will use the wetland as a focal point for their studies. The curriculum will incorporate hands-on, experiential education programs that will help build a culture of environmental stewardship throughout their community.

The Eastern Iowa Community College District (EICC) - A total of $114,126 will fund its project, "YES! Youth and Environmental Sustainability." This work will increase the number of middle and high school students who use critical thinking, problem-solving, and decision-making skills to understand the environmental topics of climate change, air pollution, and water pollution. EICC will design science teacher workshops and work with partners from Nahant Marsh and its Education Center. Nahant Marsh is a former lead shot-contaminated Superfund site that was cleaned up in 1999. The now pristine wetland will be a field site used for many of the lessons.



DAP, 10-34-0 Hit Four-Month Lows

Average retail fertilizer prices remained virtually unchanged for the third week of October, coming off nine weeks of steady decline, according to fertilizer retailers surveyed by DTN. All eight of the major fertilizer remain lower than the previous month.

DAP and 10-34-0, however, each came in at four-month lows. DAP averaged $436 per ton, as did 10-34-0.

MAP, potash, anhydrous and UAN28 all remained largely unchanged. MAP came in at $452/ton, potash $313/ton, anhydrous $452/ton and UAN28 at $313/ton. Urea and UAN32 each averaged $317/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.34/lb.N, anhydrous $0.29/lb.N, UAN28 $0.40/lb.N and UAN32 $0.41/lb.N.

Retail fertilizers remain lower compared to a year earlier. All fertilizers are double digits lower.

Both DAP and MAP are now down 20%, 10-34-0 has dropped by 22%, while UAN32 is down 21%. Urea and UAN28 are 23% less expensive, anhydrous is 25% lower and potash is 28% less expensive compared to the previous year.



Eroding River Infrastructure, a Major Concern for Corn Farmers
   
New research by the Mid-America Freight Coalition quantifies what many in agriculture have known for years; failure of our aging river locks and dams along the Mississippi River and its tributaries would be ruinous with billions of dollars in lost jobs and reduced economic activity.

Recently, USDA released estimates of the economic implications to the agriculture sector should a disruption occur at either Lock & Dam 25 on the Upper Mississippi or La Grange Lock & Dam on the Illinois River waterway. The locations were selected because they are representative of the lock system as a whole but also because they occupy key locations on the river system.

"These are both 600 foot locks even though modern tows are 1,200 feet-long. They are also at the lower reaches of the waterways," said Ken Hartman, chair of the National Corn Growers Association's Market Access Action Team. "The southbound traffic here already contributes to long delays because of the lock size. But a disruption of any length of time related to their deteriorating condition would be catastrophic for family farmers who are increasingly dependent on exports and trade."

Among several important findings, the report concludes a L&D 25 closure could result in a loss of more than 7,000 jobs, $1.3 billion of labor income and about $2.4 billion of economic activity (total industry output) annually.  Similarly, closing La Grange Lock & Dam could result in a reduction of 5,500 jobs, $900 million of labor income and $1.8 billion of economic activity annually.

"A majority of these locks were built in the 1930s and have surpassed their designed lifespan," Hartman notes. "With growing demand being made on the system upgrading the navigational efficiency of these waterways is a priority for corn farmers and NCGA, especially when most of our prospective customers are now overseas."

A total of 36 locks and dams, 28 on the Upper Mississippi River, are maintained at a 9-foot depth navigation channel for barge transportation.



ExEx16 Speakers: Global Consumers Drive Grain Demand, Push Toward Transparency

Food companies, including those supplying animal protein and grains, need to understand consumer expectations to remain successful, Todd Armstrong, senior director of Global Market Access at Elanco, told the more than 400 attendees of the Export Exchange 2016 conference on Wednesday.

He joined other speakers during the conference’s second day of general sessions focused on demand trends and how grain producers and users can meet consumer expectations in a cost-effective manner using U.S. grain products.

Co-sponsored by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA), Export Exchange 2016 offers attendees a unique opportunity to meet and build relationships with domestic suppliers of corn, distiller's dried grains with solubles (DDGS), sorghum, barley and other commodities. More than 200 international buyers and end-users of coarse grains and co-products from more than 35 countries are in Detroit for the conference.

“When you ask consumers what they expect, the consumer is demanding and expecting increased transparency in what happens to their food,” Armstrong said. “In the animal protein industry, we’re expected to be more transparent about how we raise animals.”

Paul Hishmeh, data and technology director for Field to Market, spoke on work in the United States to quantify and communicate farm and food chain sustainability, which is of increasing interest to consumers around the world.

Attendees also heard Wednesday from Florentino Lopez, executive director of the United Sorghum Checkoff Program (USCP), on U.S. sorghum availability and new uses and a panel providing international perspectives on DDGS utilization.

During the panel, Dr. Budi Tangendjaja, a consultant with USGC, described his work with a Vietnamese feed company that used formulation software but no DDGS database, showing the Export Exchange crowd the calculations he worked through with the customers. After helping the company include DDGS in its calculations, the feed mill realized cost savings, he noted.

Dr. Abdellah Ait Boulahsen, a Council consultant in Morocco, also outlined scenarios he has used with companies in that market, showing how they can use U.S. DDGS as part of a lowest-cost feed formulation.

U.S. DDGS are sold “consistently” to more than 40 countries, said USGC Manager of Global Trade Alvaro Cordero, who also spoke on the panel, with growth to other regions happening consistently. There are many companies that “are leaving a lot of money on the table” by not taking advantage of U.S. DDGS, he noted, a common theme of conversations between buyers and sellers at the conference.

Export Exchange concludes late Wednesday in Detroit with several Council trade teams traveling throughout the Midwest until early November.



Investment in Ag Technology Reaches Record $25 Billion

Investments by companies and venture capitalists in agricultural technology reached a record of as much as $25 billion globally in 2015, and that figure will probably grow again this year. Bloomberg News reports that real-time data analytics, sensors and robots are raising the prospect of the next green revolution and are spurring start ups, according to the report released Tuesday by Boston Consulting Group and AgFunder, which connects investors with agricultural companies and proposals online. The investments include research and development, deals, partnerships, equity stakes and technology centers. Early-stage funding from venture capital firms reached $3 billion globally, up from $900 million in 2013 and $400 million in 2010, the groups said.

Slumping grain, meat and dairy prices have eroded agriculture incomes, sparking more farmers to adopt so-called precision-agriculture methods to help increase efficiency. Companies including Deere & Co. are joining the race to create new products for the market that Goldman Sachs Group Inc. estimates could be worth $240 billion by 2050. The U.S. Department of Agriculture said in a report last week that the new technologies are helping to boost profits.

The technologies encompass everything from granular data analysis that enhances planting decisions to drones that provide field views around the clock. The report's findings reflect a survey of more than 50 executives from seed, fertilizer, meat, grain and farm-equipment companies as well as 15 venture-capital investors.

About 80 percent of large U.S. farmers are using GPS devices to steer their tractors, while 70 percent to 80 percent use yield mapping to determine the most productive areas of their land, the USDA estimates. Crop protection and seed companies have invested the highest percentage of revenue in "agtech," according to the private report.



Preconditioning Pays
Che Trejo, DVM, Zoetis Beef Technical Services

Producers make mindful decisions to precondition their calves to help ward off sickness and prepare calves for weaning, commingling and travel to feedlots. However, if they don’t take the step to enroll in a third-party-verified preconditioning program, are they reaping their much-deserved rewards?

Recent auction market sales data demonstrates the value producers can gain through preconditioning calves — as much as $72 more per head if enrolled in SelectVAC® compared with similarly preconditioned cattle not enrolled in SelectVAC.1 As good stewards of the animals in our care, we understand there is much more behind the choice and investment in preconditioning cattle than dollar signs alone.

From cow/calf to feedlot sectors, preconditioning is the most conscientious choice producers can make for the betterment of their animals’ health. Preconditioning programs promote calf growth, enhance immune function and minimize stress as calves move from their ranch of origin to the stocker or backgrounder operation and then to the feedlot. A study demonstrated that calves enrolled in SelectVAC were four times less likely to get sick or die in a feedlot setting than calves with an unverified health history.2 Preconditioning calves well ahead of stressors like shipment and commingling allows time for calves to respond to vaccinations and help avoid potential health risks, such as bovine respiratory disease (BRD).

Combine preconditioning with sound weaning practices to best protect your calves from infectious challenges they could encounter during their most delicate periods of early life.

Additional ways to promote Calf Wellness:
-    When working cows, handle calves with care to avoid unnecessary stress.
-    Practice controlled separation strategies at pre-weaning to avoid abrupt weaning patterns for young calves.
-    Better-orchestrated practices centered around branding and pre-weaning can decrease stressors at weaning. 

Selling cattle with a history in a verified preconditioning program, like SelectVAC, provides transparency to buyers because the program documents which products were administered and when. With lower chances of sickness and death, feedyard operators purchasing calves preconditioned with SelectVAC may no longer feel the need to administer antibiotics on arrival. Among growing consumer concerns over antibiotic usage, this benefit becomes increasingly important.

Producers who choose to precondition their calves know the decision isn’t always driven by economics. It’s the best decision for the health of their calves, as well as the cattle industry at large.



Novozymes reports results for first nine months of 2016

Novozymes, the world’s largest producer of industrial enzymes, today announced its results for the first nine months of 2016. Sales grew by 1% organically and declined by 1% in DKK compared with the first nine months of 2015. Sales outside North America increased by 5% organically, while sales in North America declined by 6% organically due to Bioenergy, Food & Beverages, and BioAg. As communicated in the half-year report, Novozymes expected growth in the second half to be skewed toward the end of the year. Sales in Q3 were lower than expected, declining by 3% organically, but Novozymes still expects moderate organic growth in the final quarter of the year.

The EBIT margin was on par, and EBIT declined by 1% compared with the first nine months of 2015. Adjusting for the restructuring costs in Q1, the EBIT margin would have expanded to above 28% and EBIT growth to above 1% compared with the first nine months of 2015.

The outlook for full-year organic sales growth is adjusted to around 2%, from previously 2-4%. The adjustment reflects the sales performance in the first nine months, and continued challenges in Household Care, Food & Beverages and agricultural markets. The outlook for sales growth in DKK is reduced to 0-1%, from previously 1-3%, due to the adjusted organic sales guidance. The outlooks for EBIT growth and net profit growth are also adjusted within the previously guided range.

Peder Holk Nielsen, President and CEO of Novozymes, comments:
“Our new innovations have had a slower pick-up than anticipated, so our sales growth is weaker than we had expected at the beginning of the year. In spite of this, we expect to deliver 8-9% net profit growth. We will push through this period of low growth by shifting more resources to customer engagement and accelerating innovation while reducing our cost level elsewhere. Our pipeline of sustainable biological solutions is strong, and we’re launching a number of promising new products in the coming quarters.”



DuPont Reports Slightly Lower Sales

DuPont announced third-quarter sales at $4.9 billion, up 1 percent versus prior year as 3-percent volume growth more than offset 2-percent lower local price.

Free cash flow improvement of $1.3 billion year-to-date reflected improvements in working capital, lower tax payments, lower capital expenditures and the absence of Chemours cash outflows.

"This quarter we continued the strong momentum from the first half of the year. We increased segment operating earnings 40 percent, expanded operating margins in each reportable segment, reduced costs, grew volumes and improved free cash flow. As a result of our continued performance and progress against strategic initiatives, we are raising our operating earnings guidance for the year," said Ed Breen, chairman and CEO of DuPont.

In the agricultural division, a seasonal operating loss of $189 million improved $21 million, or 10 percent, as cost savings, higher volumes and a $28 million benefit from currency were partially offset by lower local price and higher product costs.

Increased seed volumes were partially offset by lower fungicide and insecticide volumes. Increased seed prices were more than offset by lower crop protection prices. Prior year operating earnings included a $27 million gain from asset sales and a $21 million benefit related to prior periods. Operating margins expanded by 230 basis points.